Are ERPs still relevant? It’s an important question to ask. And in order to answer that question, first we have to take a bit of a trip back in time to see how ERP evolved in the first place.

The history of the ERP starts back in the 1960s with Material Requirements Planning. These computerized systems were used for inventory management and production planning. MRPs were basic software solutions, but allowed manufacturers to monitor inventory, reconcile balances, and run basic manufacturing, purchasing, and delivery functions. 

MRPs continued to evolve through the 1970s and 80s, gaining more manufacturing processes and becoming more sophisticated to handle scheduling and production processes. 

Then in the 1990s, the world was introduced to new systems Gartner christened as “enterprise resource planning,” or ERP. On top of the inventory and manufacturing processes that MRPs provided, ERPs brought other teams into the fold with accounting, finance, and sales functions. ERPs quickly outstripped MRPs due to their expanded capabilities to integrate multiple processes and departments into a single system.  

ERPs have been around for more than four decades as the established backbone for modernized, integrated business operations. Still, every couple of years as technology makes large jumps in advancements, we all begin to wonder: Are ERPs still relevant? 

The answer is: Yes. 

And here’s why.

The Evolution of ERP Proves Relevancy

The good news is that ERPs have certainly evolved with the times. Between their official introduction in the 1990s and now, ERPs have continually advanced. The first big advancement was the introduction of cloud ERP by NetSuite in 1998. Previously only available on-premises, new cloud ERP allowed users to access critical business data via the web wherever they were, as long as there was an internet connection. Additionally, moving to a cloud solution meant no longer needing to buy and maintain expensive servers. 

Moving ERP services to the cloud is also what made ERP more accessible for smaller companies that didn’t have the resources to invest in expensive on-prem ERP solutions. 

Another benefit to cloud ERP were the aughts advancements that enabled ERPs to start talking to other data sources like CRM, e-commerce, and marketing automation tools, and even supply chain and human capital management. This gave businesses an even more complete and holistic view of what was going on in the organization in order to resolve problems and capitalize on opportunities. 

Now in the 2020s, ERPs are transforming again with capabilities for big data and AI that make them even more powerful and adaptive. With big data, ERP systems can now handle massive amounts of information, giving the organization an even clearer and more accurate picture of what’s going on. Add in AI, and now ERP systems can learn from data patterns and make intelligent predictions, not to mention AI’s ability to streamline repetitive tasks. 

Careful Consideration Is Key

So we’ve established that ERPs are still relevant in the current market. Still, there are things to take into account to uncover how ERP is relevant for your organization, and what you need to do to ensure your ERP stays relevant. After all, an ERP is a sizable investment, not just of budget, but also time and personnel. Done well, your ERP investment will offer excellent returns and more than pay for itself in the benefits your business reaps. 

If you aren’t careful and considerate about the ERP you select or how you choose to maintain it, well: Don’t say we didn’t warn you. 

Make Sure Your ERP Is Relevant

Whether you’re looking into ERP for the first time or considering moving to a different platform, resist the urge to jump straight to outlining the technical aspects of how you want your ERP rollout to go and be sure you don’t overlook the bigger need of aligning the effort with business objectives. 

Do you know what your strategic priorities are for the next three to five years? Great. Create a strategic blueprint that maps ERP capabilities to those priorities. Otherwise, you could end up locking in inefficiencies, wasting both time and budget, and worst of all: you’ll hinder adoption of the ERP among your stakeholders, which will trickle down to everyone else in the organization. 

Keep those high-level objectives in front of you at every turn—and make sure they’re clearly defined before you take any action to support them, too. Anything left nebulous or undefined means that anyone can create their own interpretation of how it needs to go. What does that lead to? That’s right: Technological decisions that don’t actually support or align with your business’ needs. Put in plain English, it means you could go through all the time and effort to implement an ERP only to find out that the ERP you implemented is actually not relevant to your business. 

And that’s the crux of the matter: ERP is still relevant. It has the capability to bring together every aspect of a business, from inventory to production, logistics to finance, sales to marketing, and more. It builds the foundation for leveraging unified data and insights within your organization and outside of it. 

But ERP is also only as good as its ability to support your business objectives. And so ensuring your ERP is and remains relevant is dependent on a deep understanding of your business’s needs and objectives so you can select and maintain the ERP that meets those needs and objectives. 

At the end of the day, it’s also important to note that ERPs in general are not irrelevant or in decline; they are adapting to new technologies and delivery models in order to stay competitive in a constantly changing market. 

Keep Your ERP Relevant with CloudExtend

One of the many ways you can help your ERP remain relevant and adapt to changing needs is by adding automation that supports strategic decision-making. Tools like ExtendInsights by CloudExtend help departments automate processes, uncover critical insights, and drive financial success. Adopting this kind of integration helps ensure that your teams stay competitive and your NetSuite ERP remains relevant in the evolving technological landscape, transforming challenges into opportunities for innovation and growth. 

Support your evolving NetSuite ERP with easy data uploads and edits directly from Excel, and automated reporting using saved search data. Try it free.